More Than Half Of All Buyers Are Surprised By Closing Costs

Dated: 10/05/2017

Views: 75

More Than Half of All Buyers Are Surprised by Closing Costs

More Than Half of All Buyers Are Surprised by Closing Costs | MyKCM

According to a survey conducted by ClosingCorp, over half of all homebuyers are surprised by the closing costs required to obtain their mortgage.

After surveying 1,000 first-time and repeat homebuyers, the results revealed that 17% of homebuyers were surprised that closing costs were required at all, while another 35% were stunned by how much higher the fees were than expected.

“Homebuyers reported being most surprised by mortgage insurance, followed by bank fees and points, taxes, title insurance and appraisal fees.” gathered closing cost data from lenders in every state and Washington, D.C. in order to share the average costs in each state. The map below was created using the closing costs on a $200,000 mortgage with a 20% down payment.

More Than Half of All Buyers Are Surprised by Closing Costs | MyKCM

Keep in mind that if you are in the market for a home above this price range, your costs could be significantly greater. According to Freddie Mac,

“Closing costs are typically between 2 and 5% of your purchase price.”

Bottom Line

Speak with your lender and agent early and often to determine how much you’ll be responsible for at closing. Finding out that you’ll need to come up with thousands of dollars right before closing is not a surprise anyone is ever looking forward to.

Latest Blog Posts

You Can Save For A Down Payment Faster Than You Think

You Can Save for a Down Payment Faster Than You Think! Saving for a down payment is often the biggest hurdle for a first-time homebuyer. Depending on where you live, median income, median,

Read More

Home Prices The Difference 5 Years Makes

Home Prices: The Difference 5 Years MakesThe economists at CoreLogic recently released a special report entitled, Evaluating the Housing Market Since the Great Recession. The

Read More

Competition Is Coming Are You Thinking Of Selling Your Home

Competition is Coming, Are You Thinking of Selling Your Home?The number of building permits issued for single-family homes is the best indicator of how many newly built homes will rise over the next

Read More

Calm Down The Real Estate Market Is NOT Falling Apart

Calm Down! The Real Estate Market is NOT Falling Apart There has been tremendous volatility in certain markets over the last few weeks (for example, the stock and currency markets). When

Read More